The U.S. Securities and Exchange Commission announced the acquisition of an emergency relief package to aid in the protection of Binance.US customers’ assets.
The SEC obtained emergency relief from the U.S. District Court for the District of Columbia, according to a June 17 news release.
“Given that Changpeng Zhao and Binance have control of the platforms’ customers’ assets and have been able to commingle customer assets or divert customer assets as they please, as we have alleged, these prohibitions are essential to protecting investor assets,” Director of the SEC’s Division of Enforcement Gurbir S. Grewal said in the news release.
The relief involves all defendants, including Binance Holdings Limited, BAM Management US Holdings Inc., BAM Trading Services Inc. and Changpeng Zhao, the news release reported. They have agreed to repatriate the assets held for the benefit of customers of the Binance.US crypto trading platform back to the U.S.
Additionally, defendants BAM Trading Services Inc. and BAM Management US Holdings Inc. are prohibited from using corporate assets for purposes other than ordinary business expenses, according to the news release.
Grewal said the order ensures Binance.US customers can withdraw their assets from the platform, the news release said. This is crucial as the SEC works toward resolving the alleged misconduct and holding Zhao and the Binance entities accountable for their alleged securities law violations.
The order encompasses various specific provisions, the release reported. These include the repatriation of assets for BAM’s U.S. customers, the maintenance of U.S. customer assets within the country throughout the litigation and the prohibition of asset transfers to co-defendants or their affiliates.
Furthermore, it restricts BAM’s asset spending, requires oversight by the SEC, prohibits record destruction, mandates expedited accountings of certain assets and necessitates expedited discovery on the custody and security of customer assets, according to the news release.
